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The most recent financial statements for Fleury Inc., follow.Interest expense will remain

The most recent financial statements for Fleury Inc., follow.Interest expense will remain

The most recent financial statements for Fleury Inc., follow.Interest expense will remain constant; the tax rate and thedividend payout rate will also remain constant. Costs, otherexpenses, current assets, fixed assets and accounts payableincrease spontaneously with sales.

FLEURY, INC.

2011 Income Statement

  Sales

 

 

 

$

743,000

 

  Costs

 

 

 

 

578,000

 

  Other expenses

 

 

 

 

15,200

 

 

 

 

 

 

 

 

  Earnings before interest and taxes

 

 

 

$

149,800

 

  Interest paid

 

 

 

 

11,200

 

 

 

 

 

 

 

 

  Taxable income

 

 

 

$

138,600

 

  Taxes (35%)

 

 

 

 

48,510

 

 

 

 

 

 

 

 

  Netincome

 

 

 

$

90,090

 

 

 

 

 

 

 

 

  Dividends

$

27,027

 

 

 

 

  Addition to retained earnings

 

63,063

 

 

 

 

 

             

 

FLEURY, INC.

Balance Sheet as of December 31, 2011

Assets

 

Liabilities and Owners’ Equity

 

  Current assets

 

 

 

  Current liabilities

 

 

 

    Cash

$

20,240

 

    Accounts payable

$

54,400

 

    Accounts receivable

 

32,560

 

    Notes payable

 

13,600

 

 

 

 

 

 

 

 

 

    Inventory

 

69,520

 

      Total

$

68,000

 

 

 

 

 

 

 

 

 

      Total

$

122,320

 

  Long-term debt

$

126,000

 

 

 

 

 

  Owners’ equity

 

 

 

  Fixed assets

 

 

 

    Common stock and paid-in surplus

$

112,000

 

    Net plant and equipment

$

330,400

 

    Retained earnings

 

146,720

 

 

 

 

 

 

 

 

 

 

 

 

 

      Total

$

258,720

 

 

 

 

 

 

 

 

 

  Total assets

$

452,720

 

  Total liabilities and owners’ equity

$

452,720

 

 

 

 

 

 

 

 

 

 

               

 

Complete the pro forma income statements below. (Inputall amounts as positive values.)

 

FLEURY INC.

Pro Forma Income Statement

 

15% Sales Growth

 

20% Sales Growth

 

25% Sales Growth

  Sales

$

 

 

$

 

 

$

 

  Costs

 

 

 

 

 

 

 

 

  Other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  EBIT

$

 

 

$

 

 

$

 

  Interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Taxable income

$

 

 

$

 

 

$

 

  Taxes (35%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Netincome

$

 

 

$

 

 

$

 

 

 

 

 

 

 

 

 

 

     Dividends

$

 

 

$

 

 

$

 

     Add to RE

 

 

 

 

 

 

 

 

 

                 

 

Calculate the EFN for 15, 20 and 25 percent growth rates.(Negative amounts should be indicated by a minus sign.)Show all work and formulas.

 

 

15%

20%

25%

  EFN

$

$

 

Abhinav 02-Dec-2019

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